We believe that Yuexiu Property's high leverage will not improve materially over the next 12 months due to slow revenue recognition, low profitability, and ongoing land acquisitions. In our view, the parent company's leverage will also likely remain at a high level despite the mild improvement in 2016. We are lowering our long-term corporate credit rating on Yuexiu Property to 'BB+' from 'BBB-'. The outlook on the China-based developer is stable. In line with our rating action, we are affirming our 'cnBBB+' long-term Greater China regional scale rating on the company. We have removed all the ratings from CreditWatch with negative implications. The stable outlook reflects our expectation that Yuexiu Property's leverage should stabilize at the current high level. We
